Starbucks Pay-by-Smartphone Application: Remarkable Invention

I agree that going anywhere without your mobile device today is very rare. It seems that people perceive their mobile device to be the most valuable thing, and for major companies including Starbuck it doesn’t go unnoticed.

The Starbucks app for BlackBerry and iPhone now lets you pay for your premium coffee using your Smartphone. After you’ve created a Starbucks account, downloaded the Starbucks app, and linked your account; you can simply show a 2D bar code to scan to pay for your latte. The payment doesn’t pull directly from a credit card, but the app itself acts as a Starbucks Card that you add can add funds to in the order to use it.

In addition to paying for merchandise, the Starbucks app lets you check your card balance, monitor your Starbucks reward points and see nearby Starbucks locations on a map or list.

There are many people that find this relatively new invention to be a great feature, providing consumers with just another reason to carry their phone and toss away that bulky wallet. Some people like David Jakubowski thinks it is a brilliant idea.

I couldn’t agree more. I think they've done an excellent job by not just rolling out a technology, but instead really thinking through how to create value for their customers. I did have to seek and download an app, but that app aggregates and simplifies tasks that could previously only be performed through disparate systems, thereby giving me value. Making my wallet a little less bulky also adds value, as does the prospect of a faster moving line in the morning.

I expect there are many benefits on Starbucks' side as well: Increased brand affinity, increased loyalty, increased average sales per customer, reduced wait times over time, reduced credit card processing fees, etc.

I suppose you could call the lack of an Android app a downside, but I expect they'll add Android support soon.